Tax Notes

Clarifications on issues following implementation of Tax Amnesty Act

THE Bureau of Internal Revenue (BIR) issued on Monday, July 1, 2019, the Revenue Memorandum Circular (RMC) 68-2019, clarifying certain issues related to the implementation of the Tax Amnesty Act.

Filing and paying for estate tax amnesty will involve using BIR Form 2118-EA-Estate Tax Amnesty Return (Etar) and BIR Form 0621-EA – Acceptance Payment Form (APF). The APF will be duly endorsed by the Revenue District Officer (RDO) after evaluating the completeness of the documents submitted by the filer and upon computing for the estate tax amnesty due. Payments shall be made to any Authorized Agent Bank under the jurisdiction of the RDO by presenting the duly endorsed APF.

In cases of an ongoing expropriation case on the estate’s property, the taxpayer may still avail of the tax amnesty, provided that the case happened after the death of the decedent, as the property already forms part of the gross estate.

For multiple successions, the names of all the decedents will be stated in the extrajudicial settlements (EJS) shown on the electronic Certificate Authorizing Registration (eCAR). A brief explanation on the consolidation of the estates and the corresponding payment for all estates will be clearly stated on the document. Only one eCAR shall be issued per real property, including improvements, provided that the Etars are filed simultaneously at only one RDO.

Withdrawal from the bank of the estate will be allowed only upon the presentation of the eCAR, except for when written request allowing the partial or total withdrawal of the cash of the taxpayer was approved by the Commissioner of Internal Revenue or the RDO.

The BIR also pointed out that holders/buyers in a deed of sale transaction can avail of estate tax amnesty on behalf of the heirs, provided that the notarized EJS signed by the heirs is presented with other documentary requirements.

The BIR further clarifies that, for the purposes of estate tax amnesty, installment payment is not allowed. Failure to submit the validated APF with proof of payment within the two-year period of the effectivity of Revenue Regulations 6-2019 will not entitle the taxpayer to any estate tax amnesty.

Source:

P&A Grant Thornton

Certified Public Accountants

 

As published in SunStar Cebu, dated 18 July 2019